Mukesh Ambani’s Reliance Industries has opposed the 17-year tenure for gas supply from Krishna-Godavari basin to RNRL along with the price of $2.34 per unit.
Government's gas pricing policy is only for five years and because of that the 17-year pact with Reliance Natural Resources is not maintainable, said Harish Salve, the counsel for Reliance Industries.
Salve also told the three-member bench that the gas price had to be in conformity with that fixed by the government, which is $4.20 per unit, adding a higher price will ensure larger share for the exchequer.
The Reliance Industries counsel also maintained that the gas price of $4.20 per unit was not only just but was also the consideration that one of Anil Ambani's companies had agreed to pay for a power project in Andhra Pradesh.
He also said that the government had the right to fix the price of gas and that courts cannot intervene in the state's right to frame a gas distribution policy.
Labels: Mukesh Ambani, Reliance, Reliance Industries, RIL